(The Center Square) – A new Virginia bill would pause data center approvals statewide for three years.

The proposal, filed ahead of the 2027 General Assembly session, has drawn opposition from the Data Center Coalition over its potential effects on jobs, investment and local tax revenue.

The office of Sen. Russet Perry, D-Loudoun, told The Center Square that Virginia needs time to address the demands data centers place on infrastructure and natural resources.

“Data centers bring some benefit, but revenue means little if families can’t count on clean water or reliable power for their homes and hospitals,” her office said.

Senate Bill 843 would prohibit final local approval of data center rezonings, special exceptions, special use permits, site plans and plans of development beginning July 1. The restrictions would expire July 1, 2030.

The bill would also bar state agencies, including the Department of Environmental Quality and State Corporation Commission, from issuing permits and other approvals connected to data center development or siting.

That restriction extends to state authorization for construction of facilities providing data centers with electric distribution service, connections to the grid, on-site generation or related services.

Perry’s office cited concerns about grid reliability, groundwater supplies, transmission lines and diesel backup generators. Her office said the pause would give lawmakers time to establish protections for communities and resources.

Nicole Riley, director of Virginia government affairs for the Data Center Coalition, said a moratorium would threaten economic opportunities for Virginia communities.

“Moratoriums and other anti-competitive policies send a signal that an area is closed for business, both for data centers and for other significant economic development projects,” Riley said in a statement provided to The Center Square.

Riley said a pause could jeopardize projects already in development and push investment, jobs and tax revenue to neighboring states.

She pointed to Loudoun County as an example of the industry’s financial benefits. The county projects $1.3 billion in real and personal property tax revenue from data centers in fiscal 2027.

Asked how the bill would affect projects already approved locally that still need state permits or electricity connections, Perry’s office said projects further along raise legal questions.

“Projects further along raise legal questions about vested rights, and we’ll respect the law on that,” her office said.

Republican Sen. Glen Sturtevant also expressed support for a statewide moratorium in a social media post, pointing to Perry’s legislation.

An earlier proposal by Del. Irene Shin, D-Fairfax, would pause local approvals for new data centers until pending electricity interconnection requests are fulfilled or July 1, 2028, whichever comes first. The House Rules Committee carried that bill over to the 2027 session.

Perry’s proposal follows Gov. Abigail Spanberger’s September announcement of a data center accountability framework combining executive actions with proposals for the upcoming session.

Those actions include restrictions on nondisclosure agreements by agencies under the governor’s supervision, faster development of noise regulations and a review of backup generators.